201704.11
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Are Artificial-Intelligence Software Audits Around the Corner?

Recent weeks have seen a number of news reports and announcements indicating that the Next Big Thing for audits – financial audits, at least, for the time being – is the use of artificial intelligence technologies to facilitate the analysis of large volumes of data in the context of audit-related activities. KPMG’s recent announcement was particularly noteworthy from my…

201703.15
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Customers Using Software Recently Acquired by IBM Should Proceed with Caution

In 2015, IBM acquired no fewer than 11 software and services companies.  Many software customers are surprised that after IBM purchases a company, IBM often significantly changes the license terms of the products.  For some customers that have purchased unlimited or site licensing with the prior software publishers, IBM’s changes can be surprising and expensive….

201702.20
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IBM’s Audit Rights Take a Turn for the Worse

The software-audit language contained in IBM’s standard license agreements never has been anything that anyone would mistake for customer-focused or even very fair contract terms. However, in August 2014, IBM released a new version of its Passport Advantage Agreement (PAA) that applied immediately to all new business that now is in the process of being…

201702.06
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Don’t Short-Sheet the Internal Analysis in an IBM Audit

One of the most critical steps of any business faces in any software audit is conducting an internal analysis of deployments to entitlements, preferably before any audit data is shared with the auditors. That internal review serves several purposes, including (1) identifying deployments for which a company’s license documentation may be lacking, thereby giving the…

201701.18
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IBM’s Standard Audit Clause is a Time Bomb

It is standard practice for software vendors to include clauses in their license agreements giving the vendors the right to invoke audits or some other mechanisms to ensure that the licensed products are used in a way that is consistent with agreed licensing restrictions. Most software consumers would agree – perhaps grudgingly – that such…